Talos Energy Inc. (TALO) last week issued an illustrative statement saying that its business will not be getting a hit by recent a recently issued Presidential Order. The U.S. government recently put a hold on oil and gas development activities in the Eastern Gulf of Mexico (offshore Florida) through a Presidential Order. The decision also imposed new restrictions on such activities in U.S. waters off the Atlantic coasts of Georgia, South Carolina and Florida.
Talos restated that all of their offshore asset sites in the U.S. territories are situated in the Western and Central Gulf of Mexico Planning Areas. Those assets located in the federal waters of the United States have not been affected by the Presidential Order.
As a result, the restrictions in the said order have no impact on any of the company’s existing or future operations. And this does not push the company to make changes to current strategies. Therefore these actions do not bar the company from developing its existing assets, acquiring new leases or get hold of new drilling permits. Company’s 80% of the operating area is located in the federal waters while 20% of that is in waters and coastal lands of a state.
Oil and gas production activities in the U.S. Gulf of Mexico put a large share in the U.S. economy every year. It not only sustains more than 340,000 jobs across all 50 states but also contributes more than $28 billion to the country wealth. The federal income tax is the largest contributor to the U.S. treasury and royalties from oil and gas production are second to it.
Stock’s weekly performance is in the green but monthly, quarterly, yearly and year to date performances show negative trend. But only one insider transaction and that too in last month is indicating something else.
Executive VP & Head of Operations Robert Abendschein was the only individual insider to buy during the last year who purchased $417 thousand worth of stocks on August 13, 2020. Purchase of shares by an insider at an amount more than the current market price shows the confidence of the executive in the company’s future.